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Levels to watch: gold, silver and crude

Oil prices remain constrained by so far implacable resistance levels, but the picture looks more optimistic for gold and silver.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Gold bars
Source: Bloomberg

Gold eyes $1230

The metal finds itself at the 200-day simple moving average once again ($1215), with a failure to break through this indicator confirming that fresh downside is on its way. This would suggest a move back in the direction of $1180. On the four-hour chart the price has held above the 50-period EMA ($1205), so if buyers do step back in then the first target will be $1230, the high from the beginning of this week.

Silver finds support at 200-day SMA

Silver however has enjoyed a good week since its sharp reversal from above $17.50. Now the 200-day SMA at $17 provides support, while on the four-hour chart buyers have stepped in just above here, taking advantage of the oversold stochastic reading earlier in the week. A move higher now targets $17.80.

Brent targets $69

Brent crude looks close to rolling over and testing the lows of the week at $64. A break through here would head towards $61.60, close to the 50-day SMA at $61.48. The recent highs above $69 remain the upside target should a bounce materialise.

WTI could test $65.62

It remains to be seen whether US light crude can finally breach the $62 mark, but with the four-hourly stochastics and RSI in retreat today may not be the day. However on the daily chart stochastics are poised for a bullish crossover, so a higher close today would clear the way for a test of the 200-day SMA at $65.62.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.